Historically Low Fixed-Rate Financing Still Available Through End of Year
By Colin McEvoy on November 10, 2017
There’s still time before the year is out for Lehigh Valley companies to take advantage of historically low fixed-rate financing programs administered by the Lehigh Valley Economic Development Corporation (LVEDC).
The Pennsylvania Industrial Development Authority (PIDA) has lowered the interest rate on its primary real estate and machinery and equipment financing program to 2 percent fixed for the life of the loan, the lowest fixed rate in more than two years.
However, this rate is only available for the end of the year, so companies seeking to acquire new machinery and equipment, or to acquire or construct a new facility, should act before the end of 2017, according to LVEDC Vice President of Finance John Kingsley.
“Simply put, the 2 percent fixed rate makes the PIDA program the best financing option available for manufacturers and industrial companies,” Kingsley said. “We’re currently expecting the rate to last for applications through the end of the year, but that may change, so companies seeking to take advantage of this program have to act fast.”
The PIDA program, considered by many lenders to be Pennsylvania’s flagship economic development lending program, is among several incentive financing resources available through the Lehigh Valley Lending Network.
The network, which is administered by LVEDC, offers a single point of entry to 16 local banks and lending institutions and more than 30 local, state and federal business financing & incentive resources to eligible companies in our region.
“Through one inquiry, we can help you access loans with low fixed interest rates, tax credits and grants to help your business expand and your project succeed,” Kingsley said.
LVEDC has assisted several Lehigh Valley companies in accessing PIDA loans to fund their growth.
Among them is Royal Industries, a manufacturer of promotional products, which received a $1.825 million PIDA loan. The company is relocating from New York City to an 85,000 square-foot facility in Allentown, creating 80 new jobs over the next three years.
“The Lehigh Valley Economic Development Corporation and the Governor’s Action Team made us feel very welcome, and I look forward to working with everyone in the future as we move forward with this project,” said Mike Rudensky, co-owner of Royal Industries.
Additionally, LVEDC recently helped another manufacturing firm relocate to a new facility in the Lehigh Valley that offers five times the working space that it previously had, and will allow for the creation of several new jobs within the next two years, Kingsley said.
In addition to offering the reduced interest rate, PIDA has recently increased their machinery and equipment funding limit to $1.5 million, which provides LVEDC greater flexibility in assisting with larger expansion projects, Kingsley said.
In addition to low financing interest rates, LVEDC’s loan programs can help companies conserve valuable working capital by financing up to 90 percent or, in some cases, 100 percent of a project. Additionally, for eligible manufacturers, LVEDC can help reduce the rate a bank can offer for a real estate or machinery and equipment loan substantially (up to 30 percent) by using one of our local public authorities as a conduit.
For more information, contact LVEDC or complete the request form here to start the process.
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